Hi,
I just don’t see it, I am new to this but I’m trying to see how PRV could pay 1200 vnodes 120% investment return. The fees for trading are .00000005 PRV and to support something like this would take millions/billions of transactions a day. Also the total market cap is around $4,000,000.

The title of my post is intentionally provocative.
In this thread we discuss the fact that the incognito network’s economics are barely adequate for node owners to earn from transaction fees: https://incognito.org/t/tokenomics-of-prv-according-to-raz/2035
Based on the calculations @raz made, we’d need to increase fees exponentially to make it worthwhile for node owners, whose earnings from prv mining are uneven on a monthly basis.
The current approach relies on the price of the token increasi…

In fact, you are asking “mining” Nobody pays something to us (vNode&pNode owners). We secure/run the Incognito network. Without us, the transactions, pDEX etc. do not work. Since we have some expense (VPS, electricity, labor etc.) to perform these tasks, the network (not the team) pays the block rewards to us. The block rewards will be reduced by %10 every year. This will goes on for 40 years. When the total supply will be 100million PRV, the block rewards will stop. Then, we will try to earn money from just transaction fees (some other fees may be added, 40 years are so long, not easy to foresee )

I believe the PRV staking pool (aka Node Pool) is providing funds to new pNodes. Everytime a pNode earns, the block reward is split 35% to the owner (worker) and 65% to staking pool (funder). Obviously not all funded pNodes received their funded stake from Node Pool, as it’s only been around a few weeks and pNodes have been around longer. But I believe that is the source of the earned PRV for Node Pool stakers.

The basics of any blockchain are, store validated information in an unmutable, decentralized way.

The validation is done by code run by miners, validators, witnesses. Different blockchains have different names for their validators.

To reward those validators for running the code, with each validated block that is added to the chain some coins of that blockchain are generated. Each blockchain has its own math in place to distribute these generated coins to the ones involved.

Incognito is not paying the PRV, the code is generating and distributing it.

If you were to Google “how does a blockchain create coins” you will most likely find an animated version of how things work.